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Efforts are continuing at Ulster Wool to get more NI sheep farmers to stop selling wool to merchants at a spot price, and to move back to selling through the former Wool Marketing Board.
Speaking at an event in Omagh last week, Ulster Wool chair Brendan Kelly said that around 1.15m kg of wool passed through its depot at Muckamore last year, which is estimated to be over 55% of the total NI clip.
“There is 850,000kg of wool out there that we would like to get back to the board,” he said.
An intermediate depot was opened by Ulster Wool in Newtownstewart last year, where farmers could deliver their wool to avail of free haulage to the main depot in Muckamore.
The intermediate depot has been moved this year to Cranagh in north Tyrone, with Kelly noting that the Sperrins area has more sheep and is a region where Ulster Wool lost suppliers over the past five years.
He described 2014 as a “catalyst year” when wool markets dipped and balance payments to suppliers, which are paid on top of advance payments from the previous year, were lower than spot prices paid by wool merchants.
Kelly was critical of merchants who buy at spot prices and accused them of talking markets down. He maintained that, when advanced and balance payments are added together, Ulster Wool delivers a higher price for farmers than wool merchants.
He added that Ulster Wool trains sheep shearers and promotes wool products to consumers: “They [wool merchants] are not looking about having a sustainable industry 10-30 years down the line.”
Prices
Farmers were told that although there are two auctions still to take place, this season’s price schedule from Ulster Wool would likely be similar to last year.
Kelly said that Ulster Wool’s parent company, British Wool, has been selling wool strategically at its auctions, reducing the supply of wool at times of low prices to increase demand.
“We are trying to engage with customers and become more market-focused, rather than just be price takers,” farmers were told.
He also said that the board was marketing British Wool as a brand in countries such as China, and was promoting wool to consumers as a natural product which is more environmentally friendly than synthetic clothing: “All those things will raise the price of wool, but it’s a slow burn.”
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